Analysts expect Bank of Japan to act this week to shore up sentiment

Tokyo

TOKYO financial markets continued to stabilise on Monday in the wake of last week's "China shock", with some analysts suggesting that the Bank of Japan (BOJ) could use the opportunity of its Policy Board meeting this week to hint at further monetary easing as a backstop against future shocks.

The Nikkei 225 Stock Average rose by 1.6 per cent to close above the key 20,000 level at 20,089.77, following last week's 3.7 per cent fall. In percentage terms, this was the market's sharpest rise since June 23.